Wed 19 Oct 2011 14:48

Wärtsilä expects sales to fall in 2011


Finnish firm publishes interim report for the first nine months of this year.



Finnish engine manufacturer Wärtsilä has today reported an operating result for the January-September 2011 period of EUR 324 million, down from EUR 328 million during the corresponding period last year.

Net sales during the first nine months of 2011 decreased by 4 percent to EUR 2,970 million, down from EUR 3,091 million in 2010. Earnings per share amounted to EUR 1.05, compared to 1.18 in the prior-year period.

The order intake increased by 9 percent to EUR 3,267 million between January and September, up from EUR 3,002 million last year.

Third Quarter 2011

Please find below a sumamry of the highlights for the third quarter.

- Order intake increased by 11% to EUR 1,118 million (1,004).

- Order intake in joint venture companies grew significantly, EUR 182 million (68).

- Net sales decreased 18% to EUR 851 million (1,039).

- Operating result EUR 94 million, or 11.0% of net sales (EUR 117 million and 11.2%).

- Earnings per share amounted to EUR 0.28 (0.41).

- Book-to-bill increased to 1.31 (0.97).

- Wärtsilä acquired Cedervall, a manufacturer of shaft seal and bearing systems for the marine industry.

Commenting on the results, Bjorn Rosengren, Wärtsilä President and CEO, said: "This is my first time presenting Wärtsilä's result and I am pleased as it was strong in many ways. Wärtsilä's resilience in terms of solid profitability and increasing order intake in all three businesses gives us good possibilities for the future. In addition to the active Offshore segment, order intake grew significantly in our Korean joint venture, which focuses on dual-fuel engines for LNG carriers. This emphasises our strong position in the gas engine markets. Power Plants received some landmark orders, in addition to good ordering activity globally. Mining sector customers, utilities and Independent Power Producers actively placed orders.

"The third quarter developed as expected in terms of net sales, which was on a lower level compared to the previous year. This development was mainly related to the timing of deliveries. While certain marine service markets are suffering from uncertainties in the global economy, the power plant service market is more stable. In the slightly longer term, we see good prospects arising for environmental services. Despite the increased uncertainties in the global economy during this quarter, our prospects for net sales and profitability for the year 2011 remain the same."

Wärtsilä said it expects net sales for 2011 to decline by 0-5 percent compared to last year and operational profitability (EBIT% before nonrecurring items) to be around 11 percent.

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